Notes on government policy
... Another example of manipulation is that pressure groups may ask politicians to pass special laws that favor that group with special tax breaks or spending. Politicians can frame these taxes and expenditures as activist fiscal policy, but it’s really just a political pay-off. That pressure groups exp ...
... Another example of manipulation is that pressure groups may ask politicians to pass special laws that favor that group with special tax breaks or spending. Politicians can frame these taxes and expenditures as activist fiscal policy, but it’s really just a political pay-off. That pressure groups exp ...
Lecture 8b Monetarism and the quantity theory of money
... They propose a money-growth rule: The Fed should be required to target the growth rate of money such that it equals the growth rate of real GDP, leaving the price level unchanged. ...
... They propose a money-growth rule: The Fed should be required to target the growth rate of money such that it equals the growth rate of real GDP, leaving the price level unchanged. ...
Frederic Bastiat Bastiat was a19th Century French Classical Liberal
... He is Swedish Stockholm School economist who synthesized the economic thought of Leon Walras, Eugen Bohm-Bawerk, and David Ricardo into economist's economics. His most important contribution to economics was his theory of interest which made a distinction between natural and money rate of interest. ...
... He is Swedish Stockholm School economist who synthesized the economic thought of Leon Walras, Eugen Bohm-Bawerk, and David Ricardo into economist's economics. His most important contribution to economics was his theory of interest which made a distinction between natural and money rate of interest. ...
UK Monetary Policy
... • Typical savings accounts now offer about 1% interest, whilst CPI inflation is over 3%. ...
... • Typical savings accounts now offer about 1% interest, whilst CPI inflation is over 3%. ...
So Now We Have a Theoretical Model Capable of Explaining All the
... So we need to build a model economy like Chapters, 2, 4, 5 and 12, with realistic parameters for the production function, tastes for work and leisure, and investment function etc and check whether such an economy can replicate the observed stylised facts. ...
... So we need to build a model economy like Chapters, 2, 4, 5 and 12, with realistic parameters for the production function, tastes for work and leisure, and investment function etc and check whether such an economy can replicate the observed stylised facts. ...
Unit 4 Filled In
... reduce interest rates by expanding the supply of money in the economy. • In turn, the lower interest rates will encourage additional aggregate demand for consumption and investment, and thus help shorten or end the recession. • When an economy is experiencing inflation central bank officials will us ...
... reduce interest rates by expanding the supply of money in the economy. • In turn, the lower interest rates will encourage additional aggregate demand for consumption and investment, and thus help shorten or end the recession. • When an economy is experiencing inflation central bank officials will us ...
Economics is not a positive science although great strides have
... “under a gold standard regime, balance of payments developments provide automatic mechanisms of adjustment which ensures that , ultimately, any balance of payments disequilibria would be corrected. One mechanism is thorugh the variation in the interest rate which induce corrective movements of capit ...
... “under a gold standard regime, balance of payments developments provide automatic mechanisms of adjustment which ensures that , ultimately, any balance of payments disequilibria would be corrected. One mechanism is thorugh the variation in the interest rate which induce corrective movements of capit ...
Mankiw 5/e Chapter 19: Advances in Business Cycle Theory
... • Death of B. Strong – the chairman of the New York Federal Reserve Bank in 1928 was one of the causes of the Great Depression – C. and D. Romer (1989) studied how the Fed’s Open Market Committee announcements about the shift in the monetary policy influenced the output and employment ...
... • Death of B. Strong – the chairman of the New York Federal Reserve Bank in 1928 was one of the causes of the Great Depression – C. and D. Romer (1989) studied how the Fed’s Open Market Committee announcements about the shift in the monetary policy influenced the output and employment ...
7.5 Business Cycle - civisandeconomics
... • A. The Great Depression – deepest and longest-lasting economic downturn in the history of the Western world. • 1. Signs of Trouble • a. large gap between rich and poor • b. large portion of Americans were going into debt to buy consumer goods ...
... • A. The Great Depression – deepest and longest-lasting economic downturn in the history of the Western world. • 1. Signs of Trouble • a. large gap between rich and poor • b. large portion of Americans were going into debt to buy consumer goods ...
The Macroeconomic Environment
... • This only applies when there is no inflation. • So additional resources can be employed without raising wages/prices. • Provides a Keynesian avenue for economic growth – the autonomous increase in Investment p spending (which results in AE >Y). • Investment determined by: future expected profit, r ...
... • This only applies when there is no inflation. • So additional resources can be employed without raising wages/prices. • Provides a Keynesian avenue for economic growth – the autonomous increase in Investment p spending (which results in AE >Y). • Investment determined by: future expected profit, r ...
Turning Points and Leading Indicators
... • They are not divisible into shorter cycles of similar magnitude and character. This definition provides clarity when it comes to determining if a recession has begun, unlike the popular misleading “two down quarters of GDP” rule of thumb, according to which, if GDP falls for two straight quarters, ...
... • They are not divisible into shorter cycles of similar magnitude and character. This definition provides clarity when it comes to determining if a recession has begun, unlike the popular misleading “two down quarters of GDP” rule of thumb, according to which, if GDP falls for two straight quarters, ...
Friedman and the Natural Rate Theory
... If government says it will do X but instead it continues to do Y, the people will see through the charade: the equation in their heads will read “Say X=Do Y.” If the Fed says it is going to do X, then it had better do X, because if it doesn’t, then the next time it says it is going to do X, no one w ...
... If government says it will do X but instead it continues to do Y, the people will see through the charade: the equation in their heads will read “Say X=Do Y.” If the Fed says it is going to do X, then it had better do X, because if it doesn’t, then the next time it says it is going to do X, no one w ...
Monetary-Policy
... • The Bank of England buys bonds from private sector financial firms, such as pension funds, using money it has created electronically (it credits the seller’s account). Creating money increases the money supply. QE has 3 main effects: – The price of these bonds increases. This means yields fall whi ...
... • The Bank of England buys bonds from private sector financial firms, such as pension funds, using money it has created electronically (it credits the seller’s account). Creating money increases the money supply. QE has 3 main effects: – The price of these bonds increases. This means yields fall whi ...
between cambridge and vienna
... Hayek and seeing the declines in investment arising from more deeply rooted factors, especially as regards the animal spirits of those making capital investments. Whereas Hayek saw the economy behaving smoothly if monetary policy would only be neutral, Keynes (1936) had no such confidence and saw ...
... Hayek and seeing the declines in investment arising from more deeply rooted factors, especially as regards the animal spirits of those making capital investments. Whereas Hayek saw the economy behaving smoothly if monetary policy would only be neutral, Keynes (1936) had no such confidence and saw ...
chapter 13 - Ken Farr (GCSU)
... d. the average number of times one dollar is used to buy final goods and services during a year. ...
... d. the average number of times one dollar is used to buy final goods and services during a year. ...
File
... What are the major macroeconomic goals and how do we measure them? What is GDP and how is it measured? What is Per Capita GDP and how is it measured? Why is it a good measure of a nation’s standard of living? What are the components of GDP and how much does each impact the economy? What is inflation ...
... What are the major macroeconomic goals and how do we measure them? What is GDP and how is it measured? What is Per Capita GDP and how is it measured? Why is it a good measure of a nation’s standard of living? What are the components of GDP and how much does each impact the economy? What is inflation ...
Business Cycle
... The direction of the $ and foreign currency futures also provide early guidance about the strength or weakness of the respective global economies. Trends in the foreign currency futures usually show up long before they are reflected in traditional economic indicators that are released monthly or ...
... The direction of the $ and foreign currency futures also provide early guidance about the strength or weakness of the respective global economies. Trends in the foreign currency futures usually show up long before they are reflected in traditional economic indicators that are released monthly or ...
ECON 404: Lecture on Deflation
... economic growth and low inflation. Fast money growth did not immediately impact the price level because of rapid real growth and increased productivity. • This led to asset inflation (the “bubble economy”) in the late 1980s. Increased monetary growth led to increased bank lending, which in turn incr ...
... economic growth and low inflation. Fast money growth did not immediately impact the price level because of rapid real growth and increased productivity. • This led to asset inflation (the “bubble economy”) in the late 1980s. Increased monetary growth led to increased bank lending, which in turn incr ...
Measuring Unemployment Measuring Unemployment (cont.)
... • Many economists who do not favor fiscal policy as a way of stabilizing the economy believe monetary policy is the answer. ...
... • Many economists who do not favor fiscal policy as a way of stabilizing the economy believe monetary policy is the answer. ...
Principles of Modern Economics: A Sketch
... Despite what may be excusable confusion, Keynes was no radical in his theorizing, conserving almost all the elements of the legacy derived from Marshall and Pigou. Most critical was his demolition of Say’s law, the idea that in competitive markets a general glut or unemployment could not occur.5 Pr ...
... Despite what may be excusable confusion, Keynes was no radical in his theorizing, conserving almost all the elements of the legacy derived from Marshall and Pigou. Most critical was his demolition of Say’s law, the idea that in competitive markets a general glut or unemployment could not occur.5 Pr ...
Clicker quiz:
... • What is ISI? Back to Fred List! • Infant industry arguments • Close off from the internat. Economy for a while, then come back strong! • This didn’t always work. ...
... • What is ISI? Back to Fred List! • Infant industry arguments • Close off from the internat. Economy for a while, then come back strong! • This didn’t always work. ...
Quiz 1
... (i) Keynesian; (ii) Keynesian; (iii) Classical (i) Classical; (ii) Keynesian; (iii) Classical (i) Classical; (ii) Keynesian; (iii) Keynesian (i) Classical; (ii) Classical; (iii) Keynesian none of the options (a) through (d) is correct. ...
... (i) Keynesian; (ii) Keynesian; (iii) Classical (i) Classical; (ii) Keynesian; (iii) Classical (i) Classical; (ii) Keynesian; (iii) Keynesian (i) Classical; (ii) Classical; (iii) Keynesian none of the options (a) through (d) is correct. ...
If you were invited to give a talk to a group of citizens in Shanghai
... exceeds the increase in expected inflation in the short run . 2. If prices are fully flexible in the long run, the real rate eventually returns to the normal following a shift to higher money ...
... exceeds the increase in expected inflation in the short run . 2. If prices are fully flexible in the long run, the real rate eventually returns to the normal following a shift to higher money ...
Debates in Macroeconomics: Monetarism, New
... constant shifts the AD curve from AD0 to AD1. This leads to an increase in the interest rate and crowding out of planned investment. ...
... constant shifts the AD curve from AD0 to AD1. This leads to an increase in the interest rate and crowding out of planned investment. ...
Debates in Macroeconomics: Monetarism, New
... constant shifts the AD curve from AD0 to AD1. This leads to an increase in the interest rate and crowding out of planned investment. ...
... constant shifts the AD curve from AD0 to AD1. This leads to an increase in the interest rate and crowding out of planned investment. ...